Income Tax: Tax Slab & Rate 2015-16

Honorable Minister Mr. Abul Maal Abdul Muhit, Ministry of Finance, Government of People’s Republic of Bangladesh presented budget  for fiscal year 2015-16 on 04 June 2015. The proposed budget for the fiscal year 2015-16 is bigger by Tk. 550 billion over that of the outgoing fiscal.

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INCOME TAX SLAB FOR INDIVIDUAL TAXPAYERS & CORPORATE RATES APPLICABLE FOR 2015-16.

 INDIVIDUAL TAX RATES AND INCOME SLABS:

INCOME RATE
1st Tk.. 250,000 Nil
Next Tk. 400,000 10%
Next Tk. 500,000 15%
Next Tk. 6,00,000 20%
Next Tk. 30,00,000 25%
Amount over Tk. 47,50,000 30%
Any income of an individual being a non-resident foreigner 30%
Minimum Income tax payable by individual taxpayer:
Dhaka  & Chittagong City Corporation : Tk. 5,000
Other City Corporation  : Tk. 4,000
Other areas : Tk. 3,000

INDIVIDUAL TAX FREE INCOME THRESHOLD:

Type of Taxpayers Tax free Income Limit
Last Year This Year
Individual 220,000 250,000
Women and 65 above aged taxpayers 275,000 300,000
Retarded taxpayers 350,000 375,000
Liberation war wounded gazeted freedom fighters 400,000 425,000

SURCHARGE FOR INDIVIDUAL TAXPAYER BASED ON NET WEALTH:

More than 2.25 crore but not more than 10 crore – 10%
More than 10 crore but not more than 20 crore – 15%
More than 20 crore but not more than 30 crore – 20%
More than 30 crore  – 25%
Minimum surcharge payable is Tk. 3,000.-

CORPORATE TAX RATE- 1

COMPANY 2014-15 2015-16  
Publicly Traded Company 27.50% 25%
Publicly traded Co. declaring at least 30% dividend 24.75% 25%
Publicly traded Co. declaring less than 10% dividend 35% 25%
Non-publicly traded company 35% 35%
Bank, Insurance & Financial Institute:
Listed & 4th Generation Banks and FIs
Non-listed
42.50%
42.50%
40.00%
42.50%

CORPORATE TAX RATE- 2

Company
Last Year   
This Year
Merchant Bank 37.50% 37.50%
Cigarette: Non Publicly Traded
Publicly Traded
45%
40%
45%
45%
Cellular Phone: Non Publicly Traded
Publicly Traded
45%
40%
45%
40%
Minimum Tax payable on gross turnover 0.30% 0.30%
(0.10% in first three years)

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UNIFORM INCOME YEAR: 1) Calendar year shall be the income year for bank, insurance and financial institutions.
2) Financial year i.e July-June shall be income year for all other taxpayers.
3) This new provision shall be applicable from 1st July 2016.

EMPLOYEE TAX: 1) Basic salary, bonus and festival allowances are to be taxed similarly for all Government and private sector employees; [SRO No- 198/2015, date 30 June 2015] 2) Tax free cash medical allowance – 10% of basic salary or Taka 1 lakh 20 thousand, whichever is lower.
3) Cash house rent allowance, 50% of basic or Tk. 25,000 per month (whichever is lower) shall be tax exempted.
4) 5% national income or Taka 60,000 which ever is higher for use of vehicle provided by employer
5) Gratuity is to be tax free up to 2 crore and Taka 50 lakh.
6) Worker’s Participation Fund payments received by workers as defined in Section 2(65) of the Labour act 2006 be exempted from tax; WPPF receipts by officers shall be fully taxable.

For more information see full budget speech 2015-16 :
BUDGET 2015-16 In ENGLISH
BUDGET 2015-16 IN BANGLA

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14 thoughts on “Income Tax: Tax Slab & Rate 2015-16”

  1. I am more curious about Income Tax, Source Tax and Source VAT etc. Please any help regarding tax. Thanks. Emran Hossain. Cell No. +880 1854 56 08 60.

  2. What is the income tax on a mink blanket manufacturing unit for a foreign company, as well as for a chicken breeding unit?

  3. If anyone belong a e-TIN Number but his income is not more than 2 Lakh Taka, then is there any bindings to pay any Income Tax?

    • If your income not more than 2 lac why you open E-TIN, however when you open e-TIN you must be submit tax return and minimum tax Tk. 5,000/-, Please take advice any Income Tax Lawyer.

  4. Do people retired from job have to pay income tax? Please tell about both private and government job retired persons.

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